UZS depreciates further, US dollar exchange rate up

On Monday, October 14, the Central Bank of Uzbekistan raised the exchange rate of the dollar to a record-breaking 12,803.95 UZS. The dollar appreciated by 22.91 UZS in just one trading day. The last time a new peak was recorded was exactly a week ago. Since the start of the year, the UZS has depreciated by 3.65%.

Most commercial banks have been selling dollars at rates ranging from 12,800 to 12,840 UZS, with Apex Bank offering the lowest rate at 12,785 UZS. The buying rate for dollars started at 12,720 UZS, with some banks, including Asia Alliance Bank, Aloqabank, BRB, NBU, Trustbank, and Universalbank, offering a higher rate of 12,750 UZS.

Experts interviewed by Spot believe the UZS's strengthening in the first half of the year was temporary. Factors that contributed to the brief stability of the national currency included the issuance of Eurobonds, rising gold prices, and currency interventions by the Central Bank.

However, analysts are forecasting further depreciation of the UZS before the end of the year. They cite an increasing trade deficit and a decline in remittances as contributing factors. Some predict the dollar may rise to as high as 13,000 UZS.